By: Gbayesola Samuel

Professor Davies Olufemi, a Professor of Monetary Economics, University of Ibadan, enjoined policymakers not to entertain the fear of uncertainties about the future.

Professor Olufemi enjoined the policymakers while delivering the 584th Inaugural Lecture of the University of Ibadan on the behalf of the Faculty of Economics and Management Sciences.

The inaugural lecture themed” Policy Choices and the Fear of the Unknown” explored the uncertainties in policy-making.

He, therefore, advised policy makers to entertain less fear or restraint on long run incorporation into policy experiments, calling for policy or exogenous development that enhances domestic price level and the nominal exchange rate.

Professor Ogun further stressed that the long run provides time for policy credibility while urging policy makers to banish the fear of the unknown in policy development.

He said, “rational expectations imposed rational anticipation on firms and market agents, hence adjusting economic behaviours accordingly therefore advocates the erection of new production lines in anticipation of the impending surge in demand that would accompany the expected currency devaluation.”

Professor Ogun explained that while the effects of parallel market exchange rate and nominal exchange rate should be expected to wear off in the long run, the effects of corruption might still be active in the same run.

He submitted that in the long run, real factors such as technological progress and changes in taste are likely to be vital to export growth, suggesting that as much as possible and clearly consistent with economics theory, the long run should be factored into design and policy implementation.

The Inaugural Lecture was the seventh in the series for the 2024/2025 academic session.

Credit: UI DIRECTORATE OF PUBLIC COMMUNICATION